Sharesave - when the number of shares is set?

ginvzt

The company I work for offers a share scheme, which I took up. I think it is a great idea!

The one complication that is different is that company shares are traded i neuros, so the share price is set in euros for the sharesave. So, the end result depends not only on how well/bad the shares have done, but also on euro/pound exchange rate.

The question I have is when is the number of shares set? Is it in the beginning of the scheme or at the end? I have my last year's certificate, and it has number of shares I will be eligible, but this year's certificate just states the exercise price, maturity date and total savings in the end.

turbobob

The number of shares and the exercise price is set at outset. Your certificate tells you how many share options you have. Presumably the exchange rate at the time you started the scheme was used to set how many options you have.

EDIT Are you sure you're getting a new certificate every year? My experience is that you get a certificate at the start and occasional statements until maturity which show how much you've put in so far.

ginvzt

Thanks - my last certificate doesn't state the number of shares!!!!

By last year's/ this year's I mean the start of scheme. I guess, this is one more issue I need to raise with our HR (they managed to mess up on the start and issued the certificates in pounds first!)

ginvzt

I have just talked with YBS, and they said that my company decided not to set the number of shares at the beginning of the scheme this year, but to wait till the end. Does anyone know if they can do this? I know I may win or lose with the euro exchange rate, but I want to know if they are allowed to do this.

turbobob

Who is YBS? Are they the registrars for the scheme?

ginvzt

YBS - Yorkshire Building Society, that is where the money are kept.

bubblebathgirl

They have to be set at the start (i think) do you know the option price should be converted from euros into sterling, i think. Then the amount you plan to save diveded by the option price, should give you the number of shares. I think anyway.

ginvzt

That is what I thought, and that what was done last year. I think I'll have to dig up some regulation on this on internet and go argue with HR (well, email, as they are hundreds of miles away from my office!)

shadydaz

there are two types of company share schemes generally.

SAYE and SIPS

It sounds from your post like you may have signed up to SAYE last year and a SIPS this year.

There wouldn't be a share price on a SIPS agreement as you buy a set amount every month t market value and you company match the purchase up to a limit.

ginvzt

No, it is SAYE - it is sharesave scheme, the price of the shares is set (just under 10 euros as of some date in September). I am saving £100 a month (my choice) for 3 years, and the bonus for this year's scheme is 0.3, so at the end of 3 years I will have £3630 saved to get the shares at the agreed price. However, as the savings are in different currency from share price, the exchange rate comes into play.